TNAG-0637-FCO40-785-Supplies-of-electricity-for-Hong-Kong-1977 — Page 113

CONFIDENTIAL

2.

5.

Thus the two boards are compelled to work as one on the new project and out telegrams refer to CLP/PEPCO as the customer. Sir Lawrence can control the policy on distribution but he has to accept that EXXon can overrule him on the allocation of contracts for power generation (i.e. the power station itself). Thus Howard Duncan has to be persuaded to accept that HNG's package, which will cover both generation and transmission, is in the best interests of PEPC) as far as generation is concerned.

6. It, therefore, follows that the question of coal supplies to the new station falls within the aegis of PEPCO and thus it is appropriate that Howard Duncan should write to the Chinese on the subject. But he is dependent on the management and technical advice of CLP and this explains the key role of Stones as Chief Engineer in the new project.

C.C. A.J. Macdonald, Esq..

IC2, DTI.

C.V. Roberts, Esq., CRE 4. DOT.

J.B. Stewart, Esq., Hong Kong Department, FCO.

D. M. March

Senior British Trade Commissioner

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